Title: Building the innovation culture or increasing financial investments in hi tech companies - searching for the right balance

Authors: Marko Ropret; Sašo Sukič; Peter Fatur; Borut Likar

Addresses: Faculty of Administration, University of Ljubljana, Gosarjeva ulica 5, 1000 Ljubljana, Slovenia ' Faculty of Management, University of Primorska, Cankarjeva 5, 6000 Koper, Slovenia ' Faculty of Management, University of Primorska, Cankarjeva 5, 6000 Koper, Slovenia ' Faculty of Management, University of Primorska, Cankarjeva 5, 6000 Koper, Slovenia

Abstract: The article addresses two crucial mechanisms influencing innovation and economic results of hi tech companies: innovation culture development versus innovation financial investments, i.e., investments into R&D capacities and concrete research and innovation projects in Slovenia. The results show that innovation culture development (non-financial factors) and innovation financial investments (financial factors) have comparable influence on innovation results. At the same time, raising innovation financial investments does not grant an improvement of the innovation culture. Therefore, it is crucial to improve the company's innovation culture rather than to increase financial investments. The main reason is also related to obstacles, which are significantly smaller when managing the innovation culture. The article also provides guidance for better management of these two groups of influential factors and, consequently, the increase of innovation and business results.

Keywords: hi tech; high and medium-high technology companies; financial innovation factors; non-financial innovation factors; innovation and economic results.

DOI: 10.1504/IJQI.2019.101402

International Journal of Quality and Innovation, 2019 Vol.4 No.1/2, pp.68 - 87

Received: 06 Apr 2018
Accepted: 01 Nov 2018
Published online: 07 Aug 2019 *

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